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50 50 Business Partnership Contract for Philippines

50 50 Business Partnership Contract Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes and regulates a 50-50 business partnership between two parties. This document outlines equal ownership rights, responsibilities, profit-sharing arrangements, and management protocols while ensuring compliance with Philippine business regulations, including the Civil Code and Corporation Code. It addresses crucial aspects such as capital contributions, decision-making processes, deadlock resolution, and partnership dissolution procedures, providing a solid foundation for an equitable business relationship under Philippine jurisdiction.

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50 50 Business Partnership Contract

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What is a 50 50 Business Partnership Contract?

The 50-50 Business Partnership Contract is a fundamental legal document used in the Philippines when two parties wish to establish a business venture with equal ownership and control. This document is essential for entrepreneurs and businesses seeking to formalize an equal partnership structure under Philippine law. It comprehensively covers all aspects of the partnership, including capital contributions, profit sharing, management rights, and operational procedures, while ensuring compliance with Philippine legal requirements such as the Civil Code, Corporation Code, and relevant SEC regulations. The contract is particularly crucial as it establishes clear mechanisms for decision-making and dispute resolution, which are vital in equal partnerships where no single partner has majority control. The document should be customized based on the specific business sector, scale of operations, and particular requirements of the partners while maintaining its core purpose of establishing and regulating an equitable business relationship.

What sections should be included in a 50 50 Business Partnership Contract?

1. Parties: Identification and details of both partners entering into the 50-50 partnership

2. Background: Context of the partnership formation and business objectives

3. Definitions: Key terms used throughout the agreement

4. Partnership Formation: Official establishment of the partnership, including business name, address, and registration details

5. Capital Contributions: Initial and subsequent capital contributions from each partner, specifying nature and value

6. Profit and Loss Sharing: Equal (50-50) distribution mechanism for profits and losses

7. Management and Control: Partnership management structure and decision-making processes

8. Voting Rights: Voting mechanisms for partnership decisions, reflecting the 50-50 nature

9. Partners' Duties and Obligations: Specific responsibilities and commitments of each partner

10. Banking and Financial Matters: Banking arrangements, accounting procedures, and financial management

11. Partner Deadlock Resolution: Procedures for resolving disagreements in a 50-50 partnership

12. Term and Termination: Duration of partnership and conditions for termination

13. Partnership Dissolution: Process and procedures for dissolving the partnership

14. Confidentiality: Protection of partnership's confidential information

15. Governing Law: Specification of Philippine law as governing law

16. Dispute Resolution: Mechanisms for resolving disputes between partners

What sections are optional to include in a 50 50 Business Partnership Contract?

1. Non-Compete: Restrictions on partners engaging in competing businesses, used when partners have other business interests

2. Intellectual Property Rights: IP ownership and usage rights, included when the business involves intellectual property

3. Employee Management: Procedures for hiring and managing employees, included when the partnership plans to have employees

4. Insurance: Required insurance coverage, included when business activities require specific insurance

5. External Investment: Procedures for accepting external investment, included if future external funding is anticipated

6. Partner Illness/Incapacity: Procedures in case of partner illness or incapacity, included for long-term partnerships

7. Social Media and Marketing: Guidelines for social media and marketing activities, included for customer-facing businesses

What schedules should be included in a 50 50 Business Partnership Contract?

1. Schedule A - Capital Contributions: Detailed breakdown of each partner's initial capital contributions

2. Schedule B - Business Plan: Initial business plan and strategic objectives

3. Schedule C - Asset Register: List of partnership assets and their values

4. Schedule D - Designated Bank Accounts: Details of partnership bank accounts and signing authorities

5. Schedule E - Partner Contact Information: Detailed contact information and addresses for official notices

6. Appendix 1 - Operating Procedures: Day-to-day operational procedures and policies

7. Appendix 2 - Financial Procedures: Detailed financial management and accounting procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions










Clauses




































Relevant Industries

Retail

Food and Beverage

Professional Services

Technology

Manufacturing

Construction

Real Estate

Consulting

Healthcare

Education

Agriculture

Tourism and Hospitality

Import/Export

E-commerce

Creative Industries

Relevant Teams

Legal

Corporate Affairs

Finance

Compliance

Risk Management

Business Development

Operations

Executive Leadership

Administrative

Strategy

Relevant Roles

Business Owner

Entrepreneur

Managing Partner

Chief Executive Officer

Business Development Manager

Legal Counsel

Corporate Lawyer

Business Consultant

Financial Controller

Chief Financial Officer

Operations Manager

Company Secretary

Risk Manager

Compliance Officer

Business Broker

Investment Advisor

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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